Ethical and sustainable investment: here is the Italian bishops’ practical guide
The updated CEI guidelines were presented at the Milan Stock Exchange. Cardinal Zuppi was also present at the Stock Exchange: “This is my first time here”
Key points
“This is my first time on the stock exchange.” These were the opening words of Cardinal Matteo Zuppi, President of the Italian Episcopal Conference (CEI), during the presentation at the Milan Stock Exchange of the Guidelines of the Italian Episcopal Conference on ethical and sustainable investment. During the round-table discussion with Stefano Caselli, professor of financial intermediation at Bocconi University, Zuppi compared finance to a driver who sometimes runs the risk of ‘crashing’ when he ignores ethical rules or regards them as an obstacle.
Update to the CEI Guidelines
The document presented at the Milan Stock Exchange is an update to the 2020 CEI Guidelines. There are significant changes, particularly from an operational perspective. ‘The update was necessary due to the profound global and technological changes that have taken place over the last five years,’ explained Alessandro Caffi, the CEI’s financial resources manager. ‘However, the real innovations in the document concern the recommendations regarding the professional management of financial activities. We need to move beyond the ‘do-it-yourself’ approach.”
The document is addressed to everyone, but in particular to the treasurers of religious congregations and orders responsible for asset management. Caffi emphasised that ‘the management of resources must be professional, that is to say, competent, capable and prudent’. This led to a series of guidelines and explanations of terms such as asset allocation, time horizon, risk/return and risk management. Finally, “the selection of counterparties must also be structured”, Caffi pointed out; one cannot rely on “a friend of a friend”.
Weapons and investment
Cardinal Zuppi spoke out clearly on the issue of investment in arms on the sidelines of the presentation: ‘The Church is, of course, opposed to rearmament; it is clear that it supports security and there is no doubt about that, but if rearmament takes place without any economic investment in dialogue, it is truly dangerous.’ He added: “From a financial point of view I understand it, but from an ethical point of view I do not; it is unacceptable. It is true that weapons are produced,” he continued, “but there are also rules that limit and control them. Perhaps we need to continue to limit and control them, and ensure that these limits and controls are extended and not removed.” “The words of Pope Francis and Pope Leo lead us to say that we must pay close attention to something that can become destructive,” he concluded.
